At the end of the working relationship, the employer must complete certain formalities, namely:
- transmit salary/pension statements to the Luxembourg Inland Revenue (Administration des contributions directes);
- draw up the employment certificate;
- make a breakdown of the salary payments and draw up the receipt for payment of the balance;
- deregister the employee from the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS).
PrerequisitesThe employer and employee must first have terminated their working relationship, whether due to:
- termination by mutual consent;
- early retirement or retirement;
- death of the employee;
- the employer ceasing business.
How to proceed
Electronic transmission of salary/pension statements
As soon as the working relationship has ended, the employer must electronically transmit the salary/pension statements to the Luxembourg Inland Revenue (Administration des contributions directes - ACD).
The electronic submission of salary/pension statements under the normal tax regime can be made by an intermediary (proxy, fiduciary or other) acting on behalf of the employer. It must be carried out via the MyGuichet.lu platform:
- either by filing a structured document in XML format of a maximum of 7 MB;
- or by using the online data input assistant.
The national identification numbers to indicate are:
- the national identification numbers from the national directory of natural persons (13-digit identification number, without spaces);
- or the national identification numbers of legal person (11-digit identification number, without spaces).
The electronic statements must include all salaries paid during the assessment year. A separate statement must be made for each of the employee's country of residence.
The original tax cards must be kept like all other commercial documents for 10 years, in accordance with company law.
Pre-validation platform (or test)
For software editors and other IT services, the ACD provides an online pre-validation platform for XML documents generated or created for testing purposes. It is recommended to follow this pre-validation step before creating files with real data to transmit via MyGuichet.lu.
- LuxTrust for questions regarding a Private or Pro product;
- the Guichet.lu helpdesk for questions regarding the transmission application on MyGuichet.lu;
- your software provider for questions regarding syntaxic and semantic validation errors;
- the IT division of the ACD for technical questions regarding the document in XML format;
- for questions regarding taxation, the competent RTS tax office: RTS 1 (Centre), RTS Esch-sur-Alzette (Sud) or RTS Ettelbruck (Nord).
Conditions of transmission
The transmission of statements must:
- have a unique reference file number per tax year and debtor;
- contain at least one extract of a salary or pension statement;
- refer to only one tax year;
- only contain the statements from one debtor (same number of identification).
Salary and pension data transmissions may:
- contain the extracts for different employees or retirees of the same debtor (employer);
- contain initial extracts for salaries and pension contributions as well as annulling extracts.
Account statements must have a unique reference number per tax year and debtor. The time periods in the statements must correspond to the tax year.
In the event that the beneficiary changes his country of residence during the year, it is necessary to create 2 separate statements.